News Releases

Mendocino County Agrees to Collective Mediator's Proposal of $415 Million to Resolve North Bay Fires Claims

Post Date:06/18/2019 4:00 PM

Today, Mendocino County, along with eight other counties and cities, announced that it and PG&E have accepted a mediator’s proposal of $415 million to resolve the collective cities’ and counties’ North Bay Fires claims. The Mediator’s proposal is exclusive of and does not affect the claims of any residents, individuals, or businesses. The collective amount of $415 million will be allocated among each of the nine public entities in an allocation process yet to take place.

The payment is to be incorporated in, and subject to confirmation by the Bankruptcy Court, a plan of reorganization to be filed by PG&E in its pending Chapter 11 case. The settlement is part of a total settlement of $1 billion to be paid to local government entities pursuant to the confirmed plan of reorganization.

JAMS Mediator Judge Jay Gandhi (Ret.) presided over several days of in-person mediation sessions held in San Francisco, California. Participants in the mediation included 14 public entities with various claims from the 2015 Butte Fire, the 2017 North Bay Fires, and the 2018 Camp Fire. Judge Gandhi’s global proposals included a total payment of $1 billion to be made pursuant to PG&E’s confirmed plan of reorganization. PG&E and all 14 public entities accepted the proposals.

“Mendocino County is looking forward towards rebuilding and recovery,” said Mendocino County Board of Supervisors Chair Carre Brown. “Recovering taxpayer dollars from PG&E in order to rebuild is an important step for our County and for the North Bay region as a whole.”

Mendocino County Counsel Katharine Elliott adds that “the County will receive the money only when PG&E emerges from Bankruptcy and upon approval by Judge Montali. The public entities cannot use this money to rebuild until PG&E emerges from bankruptcy.”

The County is represented by County Counsel Katharine Elliott, and outside counsel Scott Summy, John Fiske, and Britt Strottman of Baron & Budd.

For more information, please contact Baron & Budd Shareholder John Fiske at Fiske@BaronBudd.com.